SAIC talking with Fiat regarding odd JV set up

According to a report in the China Business Magazine, SAIC and Fiat are currently in talks regarding business matters, and a final agreement will be reached in September.

From what we have learned, SAIC have been in contact with Fiat on several occasions regarding the current status of the Iveco-SAIC joint venture, which SAIC inherited from Nanjing Auto when the two merged over a year ago.

SAIC have plans to further the IVECO joint venture in China which is building a range of mini vans, light trucks, and military vehicles for the Chinese marketplace. Last week SAICs chairman Cai Cheng spent the week in Nanjing talking with IVECO's official representative in China. The issue appears to be that Fiat own 51% of the JV, which is against national policy which states that foreign partners in joint ventures cannot control more than 50% of a JV.

A SAIC representative was quoted as saying, "if the JV was set at 50:50, then IVECO's development in China would be rapid."

SAIC's plans to further the MPV/Business van segment of the market using IVECO's platforms and designs, but the current stumbling block appears to be the status of the JV. SAIC is aiming to take over the extra 1%, but from what we have gathered, Fiat are reluctant to give up that 1% final hold.